The State Government has maintained that the areas having coal deposits should be allocated ‘only’ to government companies under the control of the host coal-bearing state.
In a letter to the Union Coal Ministry, the State Government said the coal required by the industries located outside the State can be met by the host state government companies. However, priority will be given to the requirement of industries located or proposed in the host coal-bearing state.
The State Government’s views on the coal block allotment was made in response to a circular issued by the Centre. The State Government maintained that the area containing coal for allocation to government companies should be identified, taking into consideration that such area should be fairly large in size having sufficient and good quality coal reserves to enable planning of high capacity coal projects with world class technology so that the needs of the End Use Plants can be met on a long-term basis. The State Government, while keeping its views on the draft guidelines, said applications should be invited only from the companies nominated by the host coal-bearing state.
Since the Centre has proposed that the applications received in response to ‘the auction by competitive bidding of coal mines rules 2012’ shall be considered by a committee, the State Government said a representative of the host coal bearing state should be taken as a member.